Roughly four in five households with older adults are struggling financially, according to the National Council on Aging (NCOA). Longer life expectancies, coupled with a lack of personal savings and Social Security benefits that continue to lose buying power, have left many concerned that they’ll outlive their savings.
This could force some to take on debt or rely upon their children for support in their old age. But there might be another option: government aid. Not all seniors qualify for assistance. It depends on their income and other factors. One recent NCOA report suggests that these programs could save some families thousands of dollars per year, yet they go vastly underutilized.
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$30 billion goes unused every year
The NCOA report revealed that low-income seniors leave approximately $30 billion in government aid on the table every year, largely because they don’t know the programs exist or are unsure how to apply to them. Some of the most common programs are:
- Medicare Extra Help: This helps low-income seniors pay for their prescription drug costs. The NCOA survey valued the benefit at $4,900 per year.
- Medicare Savings Programs: These help Medicare beneficiaries pay associated costs, like premiums, copays, and deductibles. This can save seniors upwards of $1,600 per year.
- Medicaid: This helps adults with disabilities as well as low-income seniors. It’s another useful aid when it comes to paying for retirement healthcare expenses.
- Supplemental Nutrition Assistance Program (SNAP): This enables low-income families to purchase food at participating grocery stores. The average senior on SNAP receives $1,400 per year in benefits, according to NCOA.
- Low-Income Home Energy Assistance Program (LIHEAP): This helps low-income households pay for their heating and cooling costs. It saves them an average of $250 per year.
- Supplemental Security Income (SSI): The Social Security Administration pays these benefits to low-income seniors monthly. The maximum federal benefit is $967 per month for an individual or $1,450 per month for a couple. Some states add their own supplement to the federal benefit.
